US7933816B2 - System and computer program product for global compensation of employees - Google Patents
System and computer program product for global compensation of employees Download PDFInfo
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- US7933816B2 US7933816B2 US11/350,565 US35056506A US7933816B2 US 7933816 B2 US7933816 B2 US 7933816B2 US 35056506 A US35056506 A US 35056506A US 7933816 B2 US7933816 B2 US 7933816B2
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/12—Accounting
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/12—Accounting
- G06Q40/125—Finance or payroll
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q10/00—Administration; Management
- G06Q10/10—Office automation; Time management
- G06Q10/109—Time management, e.g. calendars, reminders, meetings or time accounting
- G06Q10/1091—Recording time for administrative or management purposes
Definitions
- the invention relates generally to corporate compensation systems for employees. More particularly, the invention relates to systems designed to provide a single world-wide employee compensation capability.
- Bode describes in US Patent Application US 2001/0032119 another method and apparatus for maintaining a payroll.
- a roster is prepared.
- attendance information pertaining to workers is compared to the roster; and from this comparison, the payroll is prepared.
- global shall be taken herein to mean worldwide, including the United States and Canada, most countries in Europe, Asia, Central and South America, and Mexico. Currently, most companies do not have enough employees in Central Europe, the Middle East, and Africa to justify the expense of trying to include these in a global system. This is expected to change in the future so that over time these countries will come to be included in the above definition of “global”.
- a system for employee compensation comprising; a computer system having means for storing a single instance of global employee data, global shared services input means, a country specific gross-to-net pay calculator, and global shared systems support output means.
- a method of compensating employees comprising the steps of; providing a computer system having means for storing a single instance of global employee data, accepting input using a global shared services input means, calculating gross-to-net pay using a country specific gross-to-net pay calculator, and generating compensation output using a global shared systems support output means.
- FIG. 1 is a system diagram of the present global compensation invention.
- FIG. 2 is a flowchart depicting the principal steps in practicing the present invention.
- Database 25 comprises a single instance of global employee data.
- database 25 may be located on a SAP platform (SAP is a registered trademark of SAP AG of Waldorf, Germany). Some other elements of the present invention may also be implemented on a SAP platform. However, any platform may be used without departing from the present invention as described and claimed herein. For example, a People Soft platform offered by Oracle Corp. of Redwood Shores, Calif., may be used.
- Employee data may be entered in database 25 using employee self-service 12 , manual data entry 14 , or organization initiated transaction means 16 as shown in FIG. 1 .
- Employee self-service shall be taken herein to mean entry by an employee into database 25 of data over which the employee has control, such as his personal residence address, phone number, number of tax exemptions, medical benefit plan selections, and the like.
- Organization initiated transactions are entered by a manager on behalf of an employee of data requiring management approval, such as entry of a new hire employee, salary change, termination of an employee. A manager must submit such items: the employee does not have control.
- Data entry by either an employee or a manger may be made using software applications 12 or 16 respectively as noted by the cylindrical shaped elements of FIG. 1 . Data may also be entered manually 14 using, for example, a “dumb terminal”, PDA (personal digital assistant), cell phone, or any other entry device known in the art for entering data into a database.
- PDA personal digital assistant
- the single ended arrows extending from entry elements 12 , 14 , and 16 of FIG. 1 denote that data flow is primarily one way, from the entry element into database 25 .
- Those of ordinary skill in this field will, of course, recognize that some data is by the nature of the entry device sent in the reverse direction for purposes of acknowledgement, verification, or confirmation of receipt by database 25 . This reverse direction data is incidental and minimal, and not for the purpose of further use of the data entered.
- Company benefits application 20 may handle 401K contributions, life insurance, medical benefits, retirement plan, or any other benefit offered by an employer.
- Salary plans application 21 may administer salary increases, decreases, salary plan changes or any other salary related matters.
- Global expatriate data application 22 handles payroll and other payments, e.g., moving and living expenses for employees who are working on a temporary assignment at another location in another country.
- Executive compensation data application 23 may handle executive bonuses in amount and form, whether deferred or not. Application 23 may also handle executive pension plan qualification, calculation, and payments.
- Stock options application 24 has several novel and inventive features over known stock options systems, made practical when used in the present global compensation system and method.
- a company using this compensation system uses a broker merely to sell shares on a daily basis.
- the total proceeds from the sale are sent to the company.
- Stock option application 24 performs the subtraction of option price from sale price and includes this difference in the employee's earning calculation. With this system, the proper amounts are withheld and deducted from the employee's total earnings as described below.
- the employee receives his net proceeds from exercised stock options and other earnings together in his normal payroll system. All year-to-date fields in the payroll system are correctly updated.
- All of the aforementioned global shared services applications are configured to provide such services globally, i.e., to handle employees in all countries in which the company has a substantial number of employees, by a single application interacting with the single instance global employee database 25 .
- Element 26 performs collecting, updating, and formatting of various globally standardized inputs for use by country specific gross-to-net pay calculator 30 . Such inputs are received from global expatriate date application 22 , executive compensation data application 23 , stock options application 24 , as well as, from time data application 18 which provides actual time worked data as needed for certain employees, such as part time, temporary, non-exempt employees, and the like.
- Country specific gross-to-net pay calculator 30 performs this payroll function for each employee based on their actual location using country specific laws and regulations.
- One or more payroll platforms may be used in implementing calculator 30 .
- the SAP platform may be used along with another non-SAP platform; however, any single platform or multiple platforms may be used.
- Calculator 30 is the only country specific part of the present invention. All other applications, databases, and capabilities are standardized across multiple countries, and therefore operate on a global basis. In practical terms, it has been found that over 80 percent of a compensation system for a globally situated company can be so standardized, resulting in the considerable cost and performance benefits of the present invention noted above.
- Element 40 designated as standard global payroll outputs in FIG. 1 , takes calculator 30 outputs, converts and reformats these to provide data to system support applications 42 , 44 , 46 - 49 according to their individual format requirements. These applications may have been developed at various times in the past, using various programming languages and may be running on any type of platform, such as the SAP or People Soft platforms noted above. Therefore element 40 provides the proper format for each application.
- system support applications 42 , 44 , 46 - 49 are each global application applicable to and configured to support a plurality of countries, specifically the same countries for which the global shared services applications described above are configured.
- Tax payments application 42 provides the necessary payments to taxing authorities, such as the US Internal Revenue Services, state and local income tax authorities, social security administration, similar taxing authorities in foreign countries, and the like, of wages withheld from employees according to applicable laws and regulations.
- External systems application 44 provides payments to life insurance companies, 401K plan administrators, and others which an employee may elect to have deducted from his/her wages.
- Accounting application 46 receives output data from element 40 in order to properly account for wages expenses in a company's general ledger accounting system, and to assure employee wages are charged to the proper accounts on the company's books.
- Other global systems application 47 handles payroll deductions to be applied to an employee stock purchase plan and administration of such a plan.
- Internal reporting 48 and benchmarking data 49 applications receive data from element 40 and generate various reports needed within the company 48 or make comparisons of actual data to established benchmarks 49 or create new benchmarks using the actual data received from element 40 .
- a computer system for storing a single instance of global employee data in a database.
- Any type of computer system known in the art may be used, including but not limited to a mainframe, a server, a desktop, a distributed computer, or a laptop.
- the database may be any type of database, including but not limited to a hierarchical database, a relational database, a spreadsheet, or a sequential database.
- the database may be located anywhere the computer system has access whether on a memory device within the computer system or on a remote storage device.
- step 52 inputs to the database are accepted using any of the global shared services input applications described above and shown in FIG. 1 .
- step 54 gross-to-net pay is calculated using a country specific calculator. This step would be repeated for each country as needed by a globally situated company having employees located in a plurality of countries.
- step 56 compensation outputs are generated using systems support applications 42 , 44 , 46 - 49 which are each configured to operate for all applicable countries using a single application.
Abstract
Description
Claims (5)
Priority Applications (1)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US11/350,565 US7933816B2 (en) | 2006-02-09 | 2006-02-09 | System and computer program product for global compensation of employees |
Applications Claiming Priority (1)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US11/350,565 US7933816B2 (en) | 2006-02-09 | 2006-02-09 | System and computer program product for global compensation of employees |
Publications (2)
Publication Number | Publication Date |
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US20070185790A1 US20070185790A1 (en) | 2007-08-09 |
US7933816B2 true US7933816B2 (en) | 2011-04-26 |
Family
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Family Applications (1)
Application Number | Title | Priority Date | Filing Date |
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US11/350,565 Expired - Fee Related US7933816B2 (en) | 2006-02-09 | 2006-02-09 | System and computer program product for global compensation of employees |
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US (1) | US7933816B2 (en) |
Families Citing this family (7)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US7089200B2 (en) * | 1999-12-21 | 2006-08-08 | Third Millennium Management Pty Ltd | Payroll management method and apparatus |
US20070239468A1 (en) * | 2006-03-17 | 2007-10-11 | 3M Innovative Properties Company | Automated global calculation of compensation amounts |
AU2008275197A1 (en) * | 2007-07-06 | 2009-01-15 | Jobdiva, Incorporated | Margin calculator for the temporary staffing industry |
US20090089132A1 (en) * | 2007-09-28 | 2009-04-02 | The Kroger Co. | Computer-Assisted Contract Management System for An Enterprise |
US20100100771A1 (en) * | 2008-10-20 | 2010-04-22 | Oracle International Corporation | Setup verification for an employee compensation system |
US20150221043A1 (en) * | 2014-02-05 | 2015-08-06 | Intuit Inc. | Method and system for providing global ready financial applications |
US20160232545A1 (en) * | 2015-02-10 | 2016-08-11 | Mastercard International Incorporated | System and method for detecting changes of employment |
Citations (6)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20010032119A1 (en) | 1999-12-21 | 2001-10-18 | Russell Bode | Payroll management method and apparatus |
US6401079B1 (en) | 1999-10-01 | 2002-06-04 | Inleague, Inc. | System for web-based payroll and benefits administration |
US6411939B1 (en) * | 1999-05-17 | 2002-06-25 | Offshore Benefits, Llc | Computer-aided method, machine, and products produced thereby, for illustrating a replacement of a benefit plan that is viable at one location but not viable at the location of the replacement |
US20040049436A1 (en) * | 2002-09-09 | 2004-03-11 | Adp, Inc. | Payroll automation system |
US20040138979A1 (en) * | 2003-01-15 | 2004-07-15 | Frank Juhre | Method and system for servicing an equity-based employee benefit program |
US7529701B2 (en) * | 2000-02-14 | 2009-05-05 | Ubs Painwebber, Inc. | System and method for implementing employee stock plans |
-
2006
- 2006-02-09 US US11/350,565 patent/US7933816B2/en not_active Expired - Fee Related
Patent Citations (6)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US6411939B1 (en) * | 1999-05-17 | 2002-06-25 | Offshore Benefits, Llc | Computer-aided method, machine, and products produced thereby, for illustrating a replacement of a benefit plan that is viable at one location but not viable at the location of the replacement |
US6401079B1 (en) | 1999-10-01 | 2002-06-04 | Inleague, Inc. | System for web-based payroll and benefits administration |
US20010032119A1 (en) | 1999-12-21 | 2001-10-18 | Russell Bode | Payroll management method and apparatus |
US7529701B2 (en) * | 2000-02-14 | 2009-05-05 | Ubs Painwebber, Inc. | System and method for implementing employee stock plans |
US20040049436A1 (en) * | 2002-09-09 | 2004-03-11 | Adp, Inc. | Payroll automation system |
US20040138979A1 (en) * | 2003-01-15 | 2004-07-15 | Frank Juhre | Method and system for servicing an equity-based employee benefit program |
Non-Patent Citations (1)
Title |
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The SET Tax: a tax system for our future. CPA Journal , 76 , 2 , 14(18), Feb. 2006. * |
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US20070185790A1 (en) | 2007-08-09 |
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